Key Findings
The Internet of Things (IoT) is connecting a growing range of economic and social activity across national borders, while simultaneously expanding the security challenges implied by these connections, including to Chinese state power.
Despite US-led efforts to exclude Chinese actors from digital networks worldwide, the economies of East and Southeast Asia are becoming more densely integrated with China through evolving IoT ecosystems and supply chains.
These trends threaten to disadvantage Australia and require policies to build up the country’s own technological capacities while devising innovative ways to manage, rather than avoid, the risks entailed in growing digital connections with China.
The world is being transformed by expansion of the Internet of Things (IoT). The security challenges that go with this expansion require confronting the transnational character of these evolving technological ecosystems. Distrust of China and its ever-more pervasive presence in the transnational IoT is driving US efforts to diversify digital technology supply chains away from China, and to limit China’s presence in global digital connections. But these efforts are unlikely to shift the established trend among East and Southeast Asian countries towards deepening integration with China. The cyber-physical nature of IoT ecosystems reinforces China’s advantages as a global manufacturing hub. And the complex features of these supply chains generate inertia against relocating...
Read Full Story: https://www.lowyinstitute.org/publications/the-internet-of-things-chinas-rise-and-australias-choices
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